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Posted by on Jan 18, 2010 in Business, Economy

This Guy Shoud be Prosecuted

This news is at least 10 days old. But it is important enough to share with you. [This story is a bit of an extension on the post that was lost earlier: “Is Geithner Goner?”]

This guy’s name is Stephen Friedman. While he was the Chairman of NY Fed, he oversaw the bailout of Goldman Sachs via AIG. Through AIG, Goldman received a payment of 100 cents on the dollar for the CDS contracts when they were trading at 50 cents on the dollar in the secondary market. Up to this point in story, it is just a gross violation of public trust and failure to protect the interests of US tax payers.

Here is where it gets really criminal. While this bailout was happening, Fridman was also a director at Goldman Sachs and he bought over 50,000 shares of Goldman in the open market at rock bottom prices. When NY Times exposed this story in October 2009, he hurriedly resigned as NY Fed. To this date, no charges have been filed against this public looter.  This is a classic case of insider trading. It is the same crime for which Martha Stewart was imprisoned.

Friedman belongs in the big house. All this has happened under previous administration. However, Obama failed to prosecute these looters. As I have been saying for a while, Goldman Sacks is the sack that will suffocate Obama Presidency. This scandal is just beginning.

Corruption in India may be rampant and pervasive. But the corruption by Indian politicians pales in comparison to the scale of loosing by the the Wall Street crooks.

Related articles:

  1. Huffington Post: Geithner… Scathing Report on AIG Bailout
  2. Bloomberg: Geithner’s Fed Told AIG to Limit Swaps Disclosure

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  1. | TeluGlobe - [...] said earlier that the former NY Fed Chair, Friedman belongs in jail. I just read this on NY Times…